SABIC, ExxonMobil pick Texas for potential JV

Saudi Basic Industries Corporation (SABIC) and ExxonMobil have agreed to set up a potential petrochemical joint venture (JV) project in the county of San Patricio, Texas.

“This step was taken as part of the required procedures carried out before making a decision on establishing the project,” the Saudi petrochemical giant said in a statement on Wednesday.

The project will include a 1.8 mta ethylene production unit, which will supply ethylene to other units to produce ethylene derivatives.

The two parties will study the project further and are expected to reach a final decision on it next year.

“We are focused on geographic diversification to supply new markets,” Yousef Al-Benyan, SABIC vice-chairman and CEO, said in the statement.

“The proposed venture would capture competitive feedstock, capitalize on the growing global demand for ethylene-based products, and reinforce SABIC’s strong position in the value chain,” he added.  

SABIC first said it was mulling the JV with the US-based oil major in July last year.